Romania’s potential new reduced VAT rate & the success of the food VAT rate drops
Romania potential new reduced VAT rate & the success of the food VAT rate drops
Romania’s Lower House of Parliament has approved plans to introduce a new reduced rate of VAT to 5% for cultural services, lower value houses and printed media. The new 5% VAT rate would apply to books, newspapers, magazines, and tickets to museums, monuments, cultural events, cinemas and sporting events.
More approvals from the Upper House of Parliament still need to be received before this reduced VAT rate can be introduced.
Romania’s recent success
Romania has recently seen success in lowering the tax rate on food products by 15% (see previous eBiz Answers post). From this they have seen an increase of 17% in the number of products sold in the first 2 weeks, compared to figures from last year, with coffee seeing the biggest increase in sales, going up 25%. Overall sales were 12% higher than in May and 17% higher than June 2014.